Former AOL boss is eyeing £20bn Yahoo

Former AOL chief executive Jonathan Miller is trying to raise $30 billion (£20 billion) from investors to buy internet firm Yahoo.

Reports suggest Miller may be prepared to pay up to $22 a share for the company, which is nearly twice the current share price.

The deal would be a lifesaver for the company that turned down a $47.5 billion offer from Microsoft in May with chief executive and founder Jerry Yang saying that the bid was too low.

But there are grave doubts that Miller will be able to raise the funds in the current difficult climate.

Speculation about possible deals has been widespread after Microsoft withdrew its offer.

Microsoft chief Steve Ballmer has categorically ruled out another bid but some analysts suggest that a bid by Miller could renew Microsoft's interest.

Ballmer has suggested he may still be interested in some sort of partnership with Yahoo's internet search division.